CFPB charging Reverse Mortgage Lender with deceptive advertising practices (UDAP)

The Consumer Financial Protection Bureau (CFPB) on Tuesday announced that it has taken action against Mahwah, N.J.-based reverse mortgage lender Nationwide Equities for advertising practices it describes as “deceptive,” accusing the lender’s materials of violating the Mortgage Acts and Practices Advertising Rule (MAP Rule), the Truth in Lending Act (TILA), and the Consumer Financial Protection Act of 2010 (CFPA).

“[CFPB] today took action against Nationwide Equities Corporation for sending deceptive loan advertisements to hundreds of thousands of older borrowers,” the Bureau said in its announcement of the action. “The Bureau found that advertisements from Nationwide Equities misled consumers about how much money they could receive from a reverse mortgage, the fees and costs associated with the products, and the consequences of nonpayment.”

This marks the first major regulatory action of the CFPB against a reverse mortgage industry participant by the Joe Biden administration.

Our firm provides Advertising Audits and opinions before you publish. It is part of our practice and if you subscribe, you will receive this benefit allowing you to be in better compliance regarding advertising. Advertising is interpreted very broadly. It is an easy area to enforce, because most Brokers and Lenders seem to consistently forget they are subject to specific rules regarding the FTC, Dodd-Frank, and the Safe Act.

Give us a call.

Nelson A. Locke, Esq.

(800) 656-4584

UWM has been sued. Read on…..

April 27, 2021
UWM Faces Class Action Lawsuit Over Broker Ultimatum
United Wholesale Mortgage is facing a Class Action lawsuit that was filed by The Parrish & Goodman Law Firm, on behalf of a large group of independent mortgage brokers from Florida.

The group is looking to earn back their freedom to choose which lender is best for their clients, following the anticompetitive ultimatum that was issued by UWM CEO Mat Ishbia in early March, according to a press release from the firm. “UWM’s leveraged ultimatum is clearly unlawful, unfair and is designed to use UWM’s dominant market share (nearly 35% according to company claims) to limit the consumers’ choice and steer business for their own gain,” according to the release. “This position also runs counter to the actual value provided by mortgage brokers – the ability to shop all lenders and select the company and loan program that provides their clients the best possible rate, experience and process.

In some cases, this ultimatum could create conditions by which consumers will lose access to financing altogether, depending on which lender is offering programs that match their credit profile.”


Nelson A. Locke, Esq.
Compliance Services USA